Şişecam Invests TRY 2.6 Billion in 2021

Turkchem 09 Feb 2022 59 5 dk okuma

TURKCHEM

Şişecam Invests TRY 2.6 Billion in 2021 Şişecam's consolidated net sales for 2021 reached TRY 32 billion. Despite the pandemic and global economic uncertainties stemming from the outbreak, Şişecam continued its growth creating value for its entire ecosystem by managing risks appropriately and capitalizing on sound investment opportunities. The company's total investments in this period amounted to TRY 2.6 billion. Şişecam Board Chair Prof. Dr. Ahmet Kırman stated: "Şişecam maintained its strong growth momentum in 2021 despite the global economic uncertainty atmosphere caused by the global pandemic. The company continued to demonstrate strong financial performance through its production capabilities, risk management ability, solid financial structure, digitalized infrastructure, and sound investment steps that capitalize on the right opportunities. In line with our sustainability and continuity-focused strategy supported by governance capabilities built on the principle of 'collective wisdom', we executed many successful projects. In the periods ahead, we will continue to implement the transformation projects that will carry Şişecam into the future in line with our long-term targets and strategies. With our investment plans and strong management capabilities, we will continue our journey uninterrupted towards our global targets," he said. Şişecam's consolidated net sales for 2021 reached TRY 32 billion, while investments made in the period totaled TRY 2.6 billion. In 2021, Şişecam produced 5.6 million tonnes of glass, 2.3 million tonnes of soda, and 4.5 million tonnes of industrial raw materials.

Sustained Value Creation Despite Global Uncertainties

In his statement on 2021 financial results, Şişecam Board Chair Prof. Dr. Ahmet Kırman noted that despite extraordinary conditions prevailing due to the global pandemic and the persisting environment of uncertainty in 2021, Şişecam strengthened its market-leading position through moves creating sustainable value for its entire ecosystem. Prof. Dr. Ahmet Kırman said: "In 2021, with consolidated net sales reaching TRY 32 billion, our products, investments, and employment continued to contribute to both the economies of the countries where we operate and the growth of the leading sectors we supply. In an environment dominated by global uncertainties, we were always prepared both to manage emerging risks and to evaluate investment opportunities. We successfully passed all stress tests we encountered. In the periods ahead, as the uncertainty regarding the extent of the global pandemic's impact persists, we will continue to manage our operations using our strong capabilities, make necessary updates to our business processes and plans, and continue creating value for all our stakeholders," he said. Prof. Dr. Ahmet Kırman emphasized that Şişecam, the founder of the Turkish glass industry, continued its value-creating investments for all stakeholders and supporting the growth of the sectors it supplies throughout the year, and continued: "Despite the uncertainty created by the global pandemic in the past period and extraordinary conditions, within the scope of our priority to meet Turkey's glass demand and create value for the economy, we continued our investments without interruption. In 2021, our net profit was TRY 9.2 billion. In the same period, we achieved investments totaling TRY 2.6 billion. In the periods ahead, through our initiatives in the right areas, we will continue to expand our company's global footprint. As in every period, while prioritizing domestic demand, we will continue developing our exports that contribute to our country's economy. Our contributions to employment will continue uninterrupted. Last year, within this scope and aligned with our objective to meet Turkey's rapidly rising glass demand and create sustainable value for all our stakeholders; we announced two new flat glass line investments exceeding TRY 5.2 billion (EUR 344 million) targeting architectural glass and automotive glass needs. With these investments, we aim to increase Turkey's annual flat glass production capacity by 30 percent, raising it to 2.6 million tonnes. We also announced another investment decision for Turkey in the glass packaging sector. With the 155,000-tonne furnace investment to be implemented in Eskişehir with TRY 1.3 billion (EUR 85 million), we aim to respond to the growing glass packaging demand and become an important solution partner for increasing hygiene needs worldwide," he said.

Şişecam Grew by Capitalizing on Right Investment Opportunities and Managing Risks Well

Prof. Dr. Ahmet Kırman discussed Şişecam's strategic investment decisions implemented throughout 2021, saying: "Throughout the year, Şişecam continued its value-creating investments in its existing business areas while expanding its scope of benefit by entering new business fields. In line with its sustainability and continuity-focused strategy supported by governance capabilities built on the principle of collective wisdom, the company executed many successful investments and projects. We announced a strategic investment decision that changed the structure of our partnership with the Ciner Group, with which we have been equal partners in the natural soda business in the United States since 2019.

Under this plan, Şişecam's stake in the Pacific Project increased to 60 percent. We also became 60 percent shareholders in the Wyoming natural soda ash production facility and the Atlantic Project. The Pacific and Atlantic projects with a combined capacity of 5 million tonnes are expected to start production in 2025 and reach full capacity in 2027. Before the closure of the US natural soda investment, Şişecam's soda ash capacity, which was 2.5 million tonnes, reached 5 million tonnes today with the addition of the Wyoming facility production capacity. The capacity is expected to reach 10 million tonnes in 2027 with the completion of the Atlantic and Pacific projects, and Şişecam is expected to become a world leader in soda ash by 2026," he said.

Prof. Dr. Ahmet Kırman noted that another important decision Şişecam made in 2021 was to make its first investment in glass packaging in Europe, stating: "In 2021, Şişecam decided to make its first glass packaging investment in Europe in Hungary. We plan to bring this investment, which will have an annual production capacity of 330,000 tonnes, into operation in 2023. Additionally, last year we also made our first investment in the biotechnology field in green and circular Basalia Technology. Our investment in this technology, developed with the objective of converting all types of waste into harmless substances, aligns perfectly with Şişecam's sustainability targets. We have completed pilot tests of this technology and are continuing large-scale trials within Şişecam facilities. Subsequently, through the global company we established with 7CBasalia, the technology owner, we will also contribute to its dissemination to international platforms worldwide," he said.

Prof. Dr. Ahmet Kırman expressed that Şişecam's transformation projects, digitalization applications, and strategic decisions implemented during a period when business practices were greatly altered by the global pandemic achieved successful results, stating: "The global pandemic and the difficulties it brought created a global environment where all institutions could test their decisions and implementations and required them to update themselves according to new conditions. The successful projects we delivered in our digitalization journey and the capabilities we developed played a critical role in managing this process. Furthermore, our positioning in production activities spanning 4 continents and 14 countries enabled us to mitigate the negative effects of disrupted supply chains. In the periods ahead, we remain committed to increasing the economic value we create and our global competitiveness through investments and projects that will prepare Şişecam for the future," he said.